Business owners generally find themselves in need of a basic general liability policy, either through recommendation from fellow business owners or as a requirement for maintaining a business license. Regardless of the reason, having business insurance is a smart way to protect a company’s assets, employees and financial situation.
Most companies will obtain a general policy that covers bodily harm or injury, property damage and accidents or illness occurring from operational exposure. While these are broad categories of coverage, policies are quick to identify areas that are not included with the basic liability policy. Depending on where you look for coverage, you may find more restrictions and limitations than actual services.
Insurance companies will often have a list of excluded coverage areas, but some business will find extreme exclusions clauses when using inexperienced insurers. Geographical location or even the personnel involved in the incident may constitute an exclusion qualification. Other areas of exclusion may include:
- Designated state exclusion- coverage restricted by location
- Residential exclusion- coverage restricted by residential project
- Subsidence of land- coverage invalid for mud flow, landslide or earth shifting
- Subcontractor illness or operational exclusions
When looking into a general liability policy, clarify these areas before signing a contract. Being informed is the best way to ensure your business entities, whether employee or property, are covered in the event of an incident.